How the orders are executed and how the prices are created?

Orders execution, Price providers

Written by Jakub Garcarzyk

Updated: 2023-03-16 08:53:19

Reputed financial and technological institutions cooperate with XTB as price providers. XTB disposes of top quality connections and technological solutions, which allows quote financial instruments with an average delay of 5ms for DE30 and 4ms for EURUSD.

It means the client has the constant access to the most recent financial instruments prices. XTB applies transactional spread to the prices obtained from the regulated and interbank markets. The price created in this way is placed in the order book. Each price is bound with the transactional volume - the transaction amount, which XTB is willing to conclude at the given price. On the trading platform xStation the client has full insight to the order book. The order book illustrates the situation on the market as well as XTB’s appetite for risk. XTB takes all necessary actions with due diligence to execute between 95% and 97% clients transactions at the first line in the order book.

Similarly to stock exchanges, the execution of transactions causes using available liquidity, so it is limited for other transactions. In the moment of all given line’s liquidity using the next line’s price becomes a binding market price. Due to order book refreshing after each price tick (for most popular instruments it takes place ten times per second) situations described above occur very rarely.

Are the prices offered by XTB trustworthy?

Every day XTB executes approximately more than 170 thousands transactions (data for 2020) and the amount of open positions exceeds 180 thousands on CFD instruments. The client has the right to contest the correctness of each price. The broker must prove that the price occurs on the market by presenting reliable data provided by the independent financial institutions. There are popular theories about clients’ orders hunt. The reality makes such theories hard to believe not only because of illegal and unacceptable character, but also difficulty in carrying out this operation due to the enormous amount of executed transactions. XTB neither moves nor modifies prices and guarantees its correctness.

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Losses can exceed deposits

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